NEW YORK--(BUSINESS WIRE)--BlackRock, Inc. (NYSE:BLK) today reported full year diluted EPS of
$12.37, up 17% from 2010. Fourth quarter 2011 net income(1)
of $555 million was down 7% from third quarter 2011 and 16% from a year
ago. Operating income for the fourth quarter and full year 2011 was $808
million and $3.2 billion, respectively. The full year 2011 operating
margin was 35.8%. In the fourth quarter, BlackRock repurchased
approximately 618,000 shares.

As adjusted(2)
results. Full year 2011 operating income of $3.4 billion
improved $225 million, or 7%, and diluted EPS of $11.85 improved 8%
compared with 2010. Fourth quarter diluted EPS was $3.06, including
operating income of $3.14 per diluted share and net non-operating
expense of $0.08 per diluted share. Operating margin was 39.7% for full
year 2011, an improvement compared with 2010. Fourth quarter 2011
results include restructuring charges (not included in as adjusted
results) of $32 million related to a 3.4% reduction in the fourth
quarter work force. For the full year, BlackRock continued to make
investments in focus areas, which is reflected in the net addition of
over 900 employees during the year.

“We finished 2011 with solid annual revenue and earnings growth despite
challenging market conditions, particularly in the second half of the
year,” said Laurence D. Fink, Chairman and CEO of BlackRock. “Our
results reinforce the underlying strength and momentum of our
diversified client-focused model. Our mix of businesses, together with
unparalleled risk management capabilities and a sharp focus on
execution, have allowed us to deliver strong results through highly
challenging market cycles. This momentum was reflected in the fourth
quarter as we generated net inflows of $23.8 billion in long term net
new business. In addition, with the investments made over the course of
2011, we remain well positioned to execute against key themes driving
our industry in the coming years.”

Assets under management (“AUM”) closed the quarter at $3.513 trillion,
up 5% since third quarter-end and down 1% since year-end 2010. Results
reflected strong inflows of $23.8 billion in long-term products (equity,
fixed income, multi-asset class and alternative investments) and a
$143.3 billion improvement in market and investment performance. Total
net inflows of $24.6 billion included $10.9 billion of inflows in cash
management largely offset by $10.1 billion of planned distributions in
our advisory business. For the year, we recorded $67.3 billion of
long-term net new business, before giving effect to the final BGI
merger-related outflows of $28.3 billion recorded in the first half of
the year.

The table below presents AUM and a comparison of GAAP and as adjusted
results for certain financial measures.

Full Year Ended

Q4

Q4

%

Q3

%

December 31,

%

2011

2010

Change

2011

Change

2011

2010

Change

AUM

$

3,512,681

$

3,560,968

(1

%)

$

3,345,067

5

%

$

3,512,681

$

3,560,968

(1

%)

GAAP basis:

Revenue

$

2,227

$

2,493

(11

%)

$

2,225

-

%

$

9,081

$

8,612

5

%

Operating income

$

808

$

940

(14

%)

$

777

4

%

$

3,249

$

2,998

8

%

Net income(1)

$

555

$

657

(16

%)

$

595

(7

%)

$

2,337

$

2,063

13

%

Diluted EPS

$

3.05

$

3.35

(9

%)

$

3.23

(6

%)

$

12.37

$

10.55

17

%

As Adjusted:

Operating income(2)

$

841

$

962

(13

%)

$

849

(1

%)

$

3,392

$

3,167

7

%

Net income(1)(2)

$

558

$

670

(17

%)

$

521

7

%

$

2,239

$

2,139

5

%

Diluted EPS(2)

$

3.06

$

3.42

(11

%)

$

2.83

8

%

$

11.85

$

10.94

8

%

(1) Net income represents net income attributable to
BlackRock, Inc.

(2) See notes (a) through (e) to the Condensed Consolidated
Statements of Income and Supplemental Information in Attachment I on
pages 9 through 12 for more information on as adjusted items and the
reconciliation to GAAP.

The net new business pipeline totaled $54.3 billion at January 12, 2012,
before giving effect to the previously announced $40 billion
institutional fixed income index redemption notice from a single client
that intends to insource their business over time. The pipeline included
$7.9 billion of mandates that funded since quarter end, including strong
flows from iShares®and domestic retail and
high net worth clients as well as $46.4 billion of awards to be funded.
Of this total, the pipeline reflected 97% in long-term products and 3%
in cash management and advisory assignments. BlackRock Solutions®
(“BRS”) pipeline of contracts and proposals remains robust and
reflects 14 net new assignments added during the quarter.

“Our strategic focus on ETFs, retirement, income, multi-asset solutions,
and alternatives is bearing fruit across our platform. In this volatile
and rapidly changing environment, clients are increasingly seeking
investment partners who can offer a full array of cost-effective
products, customized solutions, world-class advice and risk management
products, which we are uniquely positioned to provide.

“With volatile markets and low interest rates, investors also continue
to seek more efficient investment alternatives – particularly in fixed
income strategies. This was especially evident in the fourth quarter,
with passive strategies gaining $45.3 billion in net inflows, including
$20.1 billion across our global iShares platform. For the year, iShares
maintained its global leadership position and delivered net inflows
of $53 billion highlighted by organic growth of 18% in EMEA and 7% in
the Americas.

“Sovereign uncertainty across Europe and an increasing focus on risk
management also led to unique opportunities for BlackRock Solutions
where momentum continued to build throughout 2011 across an increasingly
global client base. BlackRock Solutions achieved record revenues
of $510 million for full year 2011, including our first two Aladdin
assignments in Japan and an increase in our advisory mandates in Europe
taking our installed client base to over 165 institutions. Assets on our Aladdin
platform ended the year at $10.2 trillion.

“While our teams continue to execute on our strategic focus areas and
drive momentum across the business, we are not immune to the volatility
of the markets, which weighed on the industry-wide performance of active
managers. We saw reduced performance fees in the fourth quarter, and
market uncertainty also affected both retail and institutional investor
behavior and in many instances investors delayed or postponed near term
investment decisions. Still, we anticipate more active dialogues in the
year ahead and BlackRock is ideally positioned to assist clients as they
look to allocate assets in this challenging market.

“We are also well-positioned to continue to deliver for our shareholders
while investing for future growth with strong cash flow estimated to be
$2.7 billion in 2011. During the year we consistently demonstrated our
commitment to strong capital management and driving enhanced shareholder
value. We delivered a dividend payout ratio of 43% during the year and
repurchased nearly 14.2 million shares including 618,000 in the fourth
quarter.

“For us, 2011 was also a year of investment to align ourselves for the
new opportunities we see and to drive global integration. Consistent
with our commitment to continually expand and enhance our talent base to
support our clients, we added over 900 employees during the year,
including strategic focus areas such as iShares, alternatives,
institutional sales and Asia. Just last week, we announced our planned
purchase of Claymore Investments which will further diversify our iShares’
product offerings in key strategic focus areas in the attractive,
high-growth Canadian marketplace. At the same time, we are leveraging
opportunities across our platform to drive further global integration
and efficiencies through activities such as realigning organizational
structures, leveraging best-in-class practices, relocating operations
into lower-cost centers of excellence and developing differentiated
operational and trading efficiencies that enable us to deliver enhanced
alpha. We also remain committed to serving as a strong advocate for our
clients in this increasingly complex regulatory and political
environment and to ensuring that their interests are represented as the
changing landscape unfolds.

“As we enter 2012, improved economic indicators have served to provide
greater market stability and the environment feels more constructive
overall, but it is likely that political and regulatory dynamics,
persistent low-rates, continued divergence between developing and
developed economies and protracted periods of heightened volatility will
remain key factors. Still, the continued investments we have made in
people, technology and products give us greater confidence in
BlackRock’s ability to continue to perform through a wide range of
environments and ultimately deliver exceptional value for clients and
shareholders. BlackRock’s employees have remained intensely focused on
serving our clients, and I want to once again express my gratitude and
admiration for their commitment to our clients and the Firm.”

Fourth Quarter Business Highlights

Long-term AUM increased 6%, or $167.2 billion, to $3.138 trillion at
December 31, 2011, reflecting $23.8 billion of net new business and
$143.3 billion of market and foreign exchange gains. Cash management AUM
grew 4% in the quarter while advisory AUM declined 7%. For the year,
long-term net inflows were $67.3 billion, before giving effect to the
final merger-related outflows recorded in the first half of the year,
and were partially offset by $32.3 billion of market valuation losses.
Cash management AUM declined 9% and advisory AUM declined 20% in 2011.

Equity AUM grew 8%, or $118.9 billion, to $1.560 trillion driven by
$106.1 billion of market and foreign exchange valuation gains. Net
inflows of $12.8 billion reflected $21.0 billion of net inflows into
index products, partially offset by $8.2 billion of net outflows from
active products. These outflows were largely driven by scientific
active equity (“SAE”) despite continuing improvements in performance,
as evidenced by 56%, 54% and 43% of SAE AUM performing above benchmark
or peer median for the one-, three- and five-year periods ended
December 31, 2011. Fundamental active equity performance has been
affected by the recent market volatility, with 44%, 53% and 86% of AUM
performing above the benchmark or peer median for the one-, three- and
five-year periods ended December 31, 2011. Our passive performance
remained strong for all time periods as 97%, 86% and 98% of AUM was
within or above tolerance for the one-, three- and five-year periods
ended December 31, 2011. In the full year 2011, we generated $24.1
billion of net inflows, before the effect of merger-related outflows.

Fixed income AUM rose $42.7 billion or 4% to $1.248 trillion, largely
reflecting $32.9 billion in market and foreign exchange valuation
gains. Net inflows of $9.8 billion included $23.9 billion of net
inflows into passive products partially offset by $14.1 billion of
outflows from active products, largely in local currency, U.S.
targeted duration and U.S. core bond mandates. Active taxable fixed
income strategies had 48%, 78% and 46% of AUM performing above the
benchmark or peer median for the one-, three- and five-year periods
ended December 31, 2011 while our active tax-exempt business showed
strong results with 61%, 71% and 74% of AUM above the benchmark or
peer median for the same time periods. Our passive performance is
strong with 96%, 85% and 91% of AUM was at or above tolerance for the
one-, three- and five-year periods ended December 31, 2011. In the
full year, fixed income net inflows of $4.3 billion, before the effect
of merger-related outflows benefited from $102.6 billion of market
valuation gains.

Multi-asset AUM increased 5% to $225.2 billion during the quarter as
net new business of $4.1 billion was augmented by $5.9 billion in
market and foreign exchange valuation gains. Net new inflows reflected
continued strength in global allocation and other balanced mandates.
66%, 27% and 92% of multi-asset AUM performed above the benchmark or
peer median for the one-, three- and five-year periods ended December
31, 2011. In 2011, strong net inflows of $42.7 billion were narrowly
offset by $3.1 billion of valuation losses.

Alternatives AUM of $104.9 billion decreased 4% driven by $1.3 billion
of net currency and commodity outflows and $1.6 billion of net
outflows from active products including fund of funds, hedge funds,
real estate and private equity mandates. Market valuation declines of
$1.6 billion also dampened results. For full year 2011, we recorded
$3.8 billion of net outflows, before merger-related outflows. Results
included $3.8 billion of currency and commodity outflows, and $1.9
billion of outflows from fund of funds, real estate and private
equity, partially offset by $1.8 billion of net inflows into hedge
fund strategies.

For the quarter, long-term net inflows of $22.5 billion in the
Americas and $10.1 billion in Asia-Pacific were partially offset by net
outflows of $8.8 billion from EMEA clients. For the year, long-term net
new business was positive in all regions, before giving effect to the
final merger-related outflows recorded in the first half of the year. In
the fourth quarter, long-term net inflows of $3.5 billion from Americas
retail and high net worth clients were partially offset by $3.0 billion
of outflows from international retail investors. iShares recorded
$20.1 billion of net inflows.

iShares AUM of $593.4 billion grew 8% driven by net inflows of
$20.1 billion, up 87% from the prior quarter and 51% from the fourth
quarter 2010. Inflows reflected $11.0 billion in fixed income and $8.8
billion in equities. EMEA iShares continued to benefit from the
investor preference for the safety of investments in developed
economies. U.S. iShares generated nearly $16 billion of inflows
driven by strong demand for our emerging markets and yield-oriented
products. For 2011, iShares gained $53.0 billion of net inflows
or a 31% share of ETP flows for the year.

Retail long-term AUM increased 4% to $363.4 billion as strong inflows
of $3.5 billion from Americas retail and high net worth clients were
largely offset by $3.0 billion of net outflows in international retail
driven by continued trends toward de-risking. Domestic retail flows
were dominated by strong demand for global allocation, U.S.
sector-specialty and municipal fixed income mutual fund offerings. For
the year, net inflows of $16.8 billion from Americas retail and high
net worth clients were partially offset by $3.3 billion of net
outflows from international retail investors, before the effect of
merger-related outflows.

Institutional long-term AUM grew 5% to $2.181 trillion and reflected
net inflows of $3.2 billion driven by $24.9 billion into passive
equity and fixed income strategies. Net inflows were partially offset
by long-term net outflows of $21.9 billion in active strategies
including $5.8 billion from SAE. These mixed flows reflect clients’
preference for more efficient market exposure and shifting asset
allocation dynamics in the face of continued market volatility. For
the full year, institutional client long-term net inflows were $0.9
billion, before the effect of the final merger-related outflows in the
first half of the year.

BlackRock Solutions added 14 net new assignments during
the quarter, including two Aladdin assignments, four risk
management mandates and 10 non-recurring advisory engagements.We
completed 15 short-term advisory assignments during the quarter.Furthermore,
we ended the quarter with 15 implementations in progress.

Fourth Quarter Financial Highlights

Comparison to the Fourth Quarter 2010

Operating income: Fourth quarter
2011 operating income decreased 14% to $808 million from $940 million in
fourth quarter 2010. Fourth quarter 2011 operating income included $32
million of restructuring charges. Operating income, as adjusted, of $841
million, which excludes the restructuring charges, decreased 13%.

Employee compensation and benefitsdecreased $67 million driven by an $84 million decrease in
incentive compensation partially offset by an $18 million net increase
in base salaries, severance, benefits and employer payroll taxes.

Distribution and servicing costsdecreased $19 million driven by a decline in cash
management-related costs due to lower average AUM.

General and administration expensesdecreased $68 million primarily related to lower marketing and
promotional expenses and lower regulatory fees.

Non-operating income (expense):
Fourth quarter 2011 non-operating expense, net of non-controlling
interests, was $21 million compared with $26 million of non-operating
income in fourth quarter 2010. Fourth quarter 2011 included $39 million
of net interest expense partially offset by $18 million of net positive
marks on private equity and real estate fund co-investments. The
increase in net interest expense reflected the $2.0 billion debt
issuance in second quarter 2011 in connection with the repurchase of
Bank of America’s remaining ownership interest in BlackRock.

Income tax expense: Income tax
expense totaled $232 million and $309 million for the fourth quarter
2011 and 2010, respectively. The GAAP effective income tax rate for the
fourth quarter 2011 was 29.5% compared with 32.0% for the fourth quarter
2010. Fourth quarter 2011 included $20 million of non-cash benefits
associated with revaluation of certain deferred tax liabilities
primarily due to tax legislation enacted in Japan, which have been
excluded from the as adjusted results.

Comparison to the Third Quarter 2011

Operating income: Fourth quarter
2011 operating income increased 4% to $808 million from $777 million in
third quarter 2011. Fourth quarter 2011 operating income included $32
million of restructuring charges, while third quarter 2011 operating
income included $63 million of UK lease exit costs related to the
Company’s exit from two London locations. Operating income, as adjusted,
which excludes the fourth quarter 2011 restructuring charges and the
third quarter 2011 UK lease exit costs, decreased 1%.

Fourth quarter 2011 revenues increased $2 million from third quarter
2011, primarily due to the following:

Investment advisory, administration fees and
securities lending revenue in fourth quarter 2011 decreased
$86 million from third quarter 2011. The decline in revenue reflected
market driven reduction in equity AUM, offset by $15 million higher
securities lending fees due to an increase in average balances of
international securities on loan.

Performance fees of $147 million
in fourth quarter 2011 increased $56 million, or 62%, from third
quarter 2011, primarily resulting from equity and multi-asset class
products that have performance measurement periods ending on December
31.

BlackRock Solutions and
advisory revenue of $149 million in fourth quarter 2011
increased from $117 million in third quarter 2011 driven by higher
revenue from advisory assignments and Aladdin mandates.

Non-operating income (expense):
Fourth quarter 2011 non-operating expense, net of non-controlling
interests, was $21 million compared with $87 million in third quarter
2011. Fourth quarter 2011 included $39 million of net interest expense
partially offset by $18 million of net positive marks on private equity
and real estate fund co-investments.

Income tax expense: The GAAP
effective income tax rate for the fourth quarter 2011 was 29.5% compared
with 13.7% for the third quarter 2011. Both periods included non-cash
benefits associated with revaluation of certain deferred tax
liabilities, which have been excluded from the as adjusted results. The
fourth quarter 2011 GAAP tax rate included a $20 million non-cash
benefit primarily due to tax legislation enacted in Japan while the
third quarter 2011 GAAP tax rate included a $129 million non-cash
benefit due to tax legislation enacted in the UK and a state tax
election.

Teleconference, Webcast and Presentation Information

Chairman and Chief Executive Officer, Laurence D. Fink, and Chief
Financial Officer, Ann Marie Petach, will host a teleconference call for
investors and analysts at 9:00 a.m. (Eastern Time). Members of the
public who are interested in participating in the teleconference should
dial, from the United States, (800) 374-0176, or from outside the United
States, (706) 679-4634, shortly before 9:00 a.m. and reference the
BlackRock Conference Call (ID Number 39409145). A live, listen-only
webcast will also be available via the investor relations section of www.blackrock.com.

Both the teleconference and webcast will be available for replay by
Thursday, January 19, 2012 and ending at midnight on Thursday, February
2, 2012. To access the replay of the teleconference, callers from the
United States should dial (800) 585-8367 and callers from outside the
United States should dial (404) 537-3406 and enter the Conference ID
Number 39409145. To access the webcast, please visit the investor
relations section of www.blackrock.com.

Performance Notes

Past performance is not indicative of future results. The performance
information shown is based on preliminarily available data. The
performance information for actively managed accounts reflects U.S.
open-end and closed-end mutual funds and similar EMEA-based products
with respect to peer median comparisons, and actively managed
institutional and high net worth separate accounts and funds located
globally with respect to benchmark comparisons, as determined using
objectively based internal parameters, using the most current verified
information available as of December 31, 2011 (November 30, 2011 for
high net worth accounts).

Accounts terminated prior to December 31, 2011 are not included. In
addition, accounts that have not been verified as of January 13, 2012
have not been included. If such terminated and other accounts had been
included, the performance information may have substantially differed
from that shown. The performance information does not include funds or
accounts that are not measured against a benchmark, any benchmark-based
alternatives product, private equity products, CDOs, or accounts managed
by BlackRock’s Financial Markets Advisory Group. Comparisons are based
on gross-of-fee performance for U.S. retail, institutional and high net
worth separate accounts and EMEA institutional separate accounts and
net-of-fee performance for EMEA based retail products. The performance
tracking information for institutional index accounts is based on
gross-of-fee performance as of December 31, 2011, and includes all
institutional accounts and all iShares funds globally using an
index strategy. AUM information is based on AUM for each account or fund
in the asset class shown without adjustment for overlapping management
of the same account or fund, as of December 31, 2011.

Source of performance information and peer medians is BlackRock, Inc.
and is based in part on data from Lipper Inc. for U.S. funds and
Morningstar, Inc. for non-U.S. funds. Fund performance reflects the
reinvestment of dividends and distributions, but does not reflect sales
charges.

About BlackRock

BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
December 31, 2011, BlackRock’s AUM was $3.513 trillion. BlackRock offers
products that span the risk spectrum to meet clients’ needs, including
active, enhanced and index strategies across markets and asset classes.
Products are offered in a variety of structures including separate
accounts, mutual funds, iShares®(exchange-traded
funds), and other pooled investment vehicles. BlackRock also offers risk
management, advisory and enterprise investment system services to a
broad base of institutional investors through BlackRock Solutions®.
Headquartered in New York City, as of December 31, 2011, the firm has
approximately 10,100 employees in 27 countries and a major presence in
key global markets, including North and South America, Europe, Asia,
Australia and the Middle East and Africa. For additional information,
please visit the Company's website at www.blackrock.com.

Forward-looking Statements

This report, and other statements that BlackRock may make, may contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act, with respect to BlackRock’s future financial or
business performance, strategies or expectations. Forward-looking
statements are typically identified by words or phrases such as “trend,”
“potential,” “opportunity,” “pipeline,” “believe,” “comfortable,”
“expect,” “anticipate,” “current,” “intention,” “estimate,” “position,”
“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,”
“seek,” “achieve,” and similar expressions, or future or conditional
verbs such as “will,” “would,” “should,” “could,” “may” or similar
expressions.

BlackRock cautions that forward-looking statements are subject to
numerous assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made, and
BlackRock assumes no duty to and does not undertake to update
forward-looking statements. Actual results could differ materially from
those anticipated in forward-looking statements and future results could
differ materially from historical performance.

In addition to risk factors previously disclosed in BlackRock’s
Securities and Exchange Commission (“SEC”) reports and those identified
elsewhere in this report the following factors, among others, could
cause actual results to differ materially from forward-looking
statements or historical performance: (1) the introduction, withdrawal,
success and timing of business initiatives and strategies; (2) changes
and volatility in political, economic or industry conditions, the
interest rate environment, foreign exchange rates or financial and
capital markets, which could result in changes in demand for products or
services or in the value of assets under management; (3) the relative
and absolute investment performance of BlackRock’s investment products;
(4) the impact of increased competition; (5) the impact of capital
improvement projects; (6) the impact of future acquisitions or
divestitures; (7) the unfavorable resolution of legal proceedings;
(8) the extent and timing of any share repurchases; (9) the impact,
extent and timing of technological changes and the adequacy of
intellectual property and information security protection; (10) the
impact of legislative and regulatory actions and reforms, including the
Dodd-Frank Wall Street Reform and Consumer Protection Act, and
regulatory, supervisory or enforcement actions of government agencies
relating to BlackRock, Barclays Bank PLC or The PNC Financial Services
Group, Inc.; (11) terrorist activities, international hostilities and
natural disasters, which may adversely affect the general economy,
domestic and local financial and capital markets, specific industries or
BlackRock; (12) the ability to attract and retain highly talented
professionals; (13) fluctuations in the carrying value of BlackRock’s
economic investments; (14) the impact of changes to tax legislation and,
generally, the tax position of the Company; (15) BlackRock’s success in
maintaining the distribution of its products; (16) the impact of
BlackRock electing to provide support to its products from time to time;
and (17) the impact of problems at other financial institutions or the
failure or negative performance of products at other financial
institutions.

BlackRock's Annual Report on Form 10-K and BlackRock's subsequent
filings with the SEC, accessible on the SEC's website at www.sec.govand on BlackRock’s website at www.blackrock.com,
discuss these factors in more detail and identify additional factors
that can affect forward-looking statements. The information contained on
the Company’s website is not a part of this press release.

Attachment I

BlackRock, Inc.

Condensed Consolidated Statements of Income and Supplemental
Information

Notes to Condensed Consolidated Statements of Income and Supplemental
Information

(unaudited)

BlackRock reports its financial results in accordance with accounting
principles generally accepted in the United States ("GAAP"); however,
management believes evaluating the Company’s ongoing operating results
may be enhanced if investors have additional non-GAAP basis financial
measures. Management reviews non-GAAP financial measures to assess
ongoing operations and, for the reasons described below, considers them
to be effective indicators, for both management and investors, of
BlackRock's financial performance over time. BlackRock's management does
not advocate that investors consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information prepared
in accordance with GAAP.

Computations for all periods are derived from the Company's condensed
consolidated statements of income as follows:

(a) Operating income, as adjusted, and
operating margin, as adjusted:

Operating income, as adjusted, equals operating income, GAAP basis,
excluding certain items management deems non-recurring, or transactions
that ultimately will not impact BlackRock’s book value, as indicated in
the table below. Operating income used for operating margin measurement
equals operating income, as adjusted, excluding the impact of closed-end
fund launch costs and commissions. Operating margin, as adjusted, equals
operating income used for operating margin measurement, divided by
revenue used for operating margin measurement, as indicated in the table
below.

BGI integration costs consisted principally of compensation expense,
legal fees, marketing and promotional, occupancy and consulting expenses
incurred in conjunction with the BGI acquisition from Barclays. UK lease
exit costs represent costs to exit two locations in London in the third
quarter 2011. Restructuring charges consist of compensation costs and
professional fees.

The portion of compensation expense associated with certain long-term
incentive plans (“LTIP”) that will be funded through the distribution to
participants of shares of BlackRock stock held by The PNC Financial
Services Group, Inc. ("PNC") and a Merrill Lynch & Co., Inc. ("Merrill
Lynch") cash compensation contribution, a portion of which has been
received, has been excluded because these charges ultimately do not
impact BlackRock’s book value. The expense related to the Merrill Lynch
cash compensation contribution ceased at the end of the third quarter
2011.

Compensation expense associated with appreciation (depreciation) on
investments related to certain BlackRock deferred compensation plans has
been excluded as returns on investments set aside for these plans, which
substantially offset this expense, are reported in non-operating income
(expense).

Management believes operating income exclusive of these costs is a
useful measure in evaluating BlackRock’s operating performance and helps
enhance the comparability of this information for the reporting periods
presented.

Operating margin, as adjusted:

Operating income used for measuring operating margin, as adjusted, is
equal to operating income, as adjusted, excluding the impact of
closed-end fund launch costs and commissions. Management believes the
exclusion of such costs and commissions is useful because these costs
can fluctuate considerably and revenues associated with the expenditure
of these costs will not fully impact BlackRock’s results until future
periods.

Operating margin, as adjusted, allows BlackRock to compare performance
from period-to-period by adjusting for items that may not recur, recur
infrequently or may fluctuate based on market movements, such as BGI
integration costs, UK lease exit costs, restructuring charges,
closed-end fund launch costs, commissions paid to certain employees as
compensation and fluctuations in compensation expense based on
mark-to-market movements in investments held to fund certain
compensation plans. BlackRock also uses operating margin, as adjusted,
to monitor corporate performance and efficiency and as a benchmark to
compare its performance with other companies. Management uses both the
GAAP and non-GAAP financial measures in evaluating the financial
performance of BlackRock. The non-GAAP measure by itself may pose
limitations because it does not include all of BlackRock’s revenues and
expenses.

Revenue used for operating margin, as adjusted, excludes distribution
and servicing costs paid to related parties and other third parties.
Management believes the exclusion of such costs is useful because it
creates consistency in the treatment for certain contracts for similar
services, which due to the terms of the contracts, are accounted for
under GAAP on a net basis within investment advisory, administration
fees and securities lending revenue. Amortization of deferred sales
commissions is excluded from revenue used for operating margin
measurement, as adjusted, because such costs, over time, substantially
offset distribution fee revenue earned by the Company. For each of these
items, BlackRock excludes from revenue used for operating margin, as
adjusted, the costs related to each of these items as a proxy for such
offsetting revenues.

BlackRock, Inc.

Notes to Condensed Consolidated Statements of Income and Supplemental
Information

(unaudited)

(continued)

(b) Non-operating income (expense), less net
income (loss) attributable to non-controlling interests, as adjusted:

Non-operating income (expense), less net income (loss) attributable to
non-controlling interests (“NCI”), as adjusted, equals non-operating
income (expense), GAAP basis, less net income (loss) attributable to
NCI, GAAP basis, adjusted for compensation expense associated with
(appreciation)depreciation on investments related to certain BlackRock
deferred compensation plans. The compensation expense offset is recorded
in operating income. This compensation expense has been included in
non-operating income (expense), less net income (loss) attributable to
NCI, as adjusted, to offset returns on investments set aside for these
plans, which are reported in non-operating income (expense), GAAP basis.

Non-operating income (expense), less net income (loss) attributable
to NCI, as adjusted

($21

)

$

20

($79

)

($113

)

$

25

(1)Net of net income (loss) attributable to non-controlling
interests.

Management believes non-operating income (expense), less net income
(loss) attributable to NCI, as adjusted, provides comparability of this
information to reporting periods and is an effective measure for
reviewing BlackRock’s non-operating contribution to its results. As
compensation expense associated with (appreciation) depreciation on
investments related to certain deferred compensation plans, which is
included in operating income, substantially offsets the gain (loss) on
the investments set aside for these plans, management believes
non-operating income (expense), less net income (loss) attributable to
NCI, as adjusted, provides a useful measure, for both management and
investors, of BlackRock’s non-operating results that impact book value.

BlackRock, Inc.

Notes to Condensed Consolidated Statements of Income and Supplemental
Information

(unaudited)

(continued)

(c) Net income attributable to BlackRock, Inc.,
as adjusted:

Management believes net income attributable to BlackRock, Inc., as
adjusted, and diluted earnings per common share, as adjusted, are useful
measures of BlackRock’s profitability and financial performance. Net
income attributable to BlackRock, Inc., as adjusted, equals net income
attributable to BlackRock, Inc., GAAP basis, adjusted for significant
non-recurring items, charges that ultimately will not impact BlackRock’s
book value or certain tax items that do not impact cash flow.

Three Months Ended

Year Ended

(Dollar amounts in millions, except per share data)

December 31,

September 30,

December 31,

2011

2010

2011

2011

2010

Net income attributable to BlackRock, Inc., GAAP basis

$

555

$

657

$

595

$

2,337

$

2,063

Non-GAAP adjustments, net of tax:(d)

BGI integration costs

-

-

-

-

59

UK lease exit costs

-

-

43

43

-

Restructuring charges

22

-

-

22

-

PNC LTIP funding obligation

1

11

10

30

40

Merrill Lynch compensation contribution

-

2

2

5

7

Income tax law changes/election

(20

)

-

(129

)

(198

)

(30

)

Net income attributable to BlackRock, Inc., as adjusted

$

558

$

670

$

521

$

2,239

$

2,139

Allocation of net income attributable to BlackRock, Inc., as
adjusted:

During the years ended December 31, 2011 and 2010, adjustments primarily
related to a state tax election and certain enacted UK tax and Japan
legislations, which resulted in the re-measurement of certain deferred
income tax liabilities primarily related to acquired indefinite-lived
intangible assets. The resulting increase or decrease in income taxes
has been excluded from net income attributable to BlackRock, Inc., as
adjusted, as these items will not have a cash flow impact and to ensure
comparability for periods presented.

(d) For the years ended December 31, 2011 and 2010, non-GAAP adjustments
were tax effected at 31.8% and 33%, respectively, reflecting a blended
rate applicable to the adjustments. BlackRock’s tax rates in fourth
quarter 2011 and 2010 included the impact of changes in the fourth
quarter to the respective full year blended rates applicable to the
adjustments.

(e) Non-voting participating preferred shares are considered to be
common stock equivalents for purposes of determining basic and diluted
earnings per share calculations. Certain unvested restricted stock units
are not included in this number as they are deemed participating
securities in accordance with required provisions of Accounting
Standards Codification 260-10, Earnings per Share. For the
quarters ended December 31, 2011 and 2010, and September 30, 2011
average outstanding participating securities were 0.2 million, 2.7
million and 2.2 million, respectively.

The Company presents economic tangible assets as additional
information to enable investors to eliminate gross presentation of
certain assets that have equal and offsetting liabilities or
non-controlling interests that ultimately do not have an impact on
stockholders’ equity (excluding appropriated retained earnings
related to consolidated collateralized loan obligations) or cash
flows. In addition, goodwill and intangible assets are excluded
from economic tangible assets.

December 31,

2011

2010

Total balance sheet assets

$

180

$

179

Separate account assets and collateral held under securities
lending agreements

(140

)

(139

)

Consolidated VIEs/sponsored investment funds

(2

)

(2

)

Goodwill and intangible assets, net

(30

)

(30

)

Economic tangible assets

$

8

$

8

Economic tangible assets include cash, receivables, seed and
co-investments, and other assets.

Attachment IV

BlackRock, Inc.

Q4 2011- Changes in Assets Under Management

(Dollar amounts in millions)

(unaudited)

Current Quarter Component Changes

Net

Market

September 30,

subscriptions

appreciation

Foreign

December 31,

Variance vs.

2011(1)

(redemptions)(2)

(depreciation)

exchange(4)

2011

September 30, 2011

Equity:

Active

$

266,047

$

(8,234

)

$

17,608

$

(265

)

$

275,156

3

%

Institutional index

790,328

12,173

63,545

(747

)

865,299

9

%

iShares

384,821

8,848

26,989

(1,007

)

419,651

9

%

Fixed income:

Active

620,139

(14,081

)

9,250

(504

)

614,804

(1

%)

Institutional index

443,018

12,813

23,839

(554

)

479,116

8

%

iShares

141,865

11,044

1,424

(531

)

153,802

8

%

Multi-asset class

215,183

4,111

7,427

(1,551

)

225,170

5

%

Alternatives:

Active

65,580

(1,560

)

(402

)

29

63,647

(3

%)

Currency and commodities

43,812

(1,289

)

(1,239

)

17

41,301

(6

%)

Long-term

2,970,793

23,825

148,441

(5,113

)

3,137,946

6

%

Cash management

244,663

10,890

17

(905

)

254,665

4

%

Sub Total

3,215,456

34,715

148,458

(6,018

)

3,392,611

6

%

Advisory(5)

129,611

(10,145

)

689

(85

)

120,070

(7

%)

Total AUM

$

3,345,067

$

24,570

$

149,147

$

(6,103

)

$

3,512,681

5

%

BlackRock, Inc.

Full Year 2011- Changes in Assets Under Management

(Dollar amounts in millions)

(unaudited)

Year-over-Year Component Changes

Net

BGI merger-

Market

December 31,

subscriptions

related

appreciation

Foreign

December 31,

Variance vs.

2010(1)

(redemptions)(2)

outflows(3)

(depreciation)

exchange(4)

2011

December 31, 2010

Equity:

Active

$

334,532

$

(22,876

)

$

(6,943

)

$

(29,793

)

$

236

$

275,156

(18

%)

Institutional index

911,775

22,403

(20,630

)

(48,402

)

153

865,299

(5

%)

iShares

448,160

24,612

-

(49,863

)

(3,258

)

419,651

(6

%)

Fixed income:

Active

592,303

(17,398

)

(413

)

40,366

(54

)

614,804

4

%

Institutional index

425,930

(5,152

)

(113

)

55,463

2,988

479,116

12

%

iShares

123,091

26,876

-

4,824

(989

)

153,802

25

%

Multi-asset class

185,587

42,654

-

(401

)

(2,670

)

225,170

21

%

Alternatives:

Active

63,603

48

(152

)

179

(31

)

63,647

0

%

Currency and commodities

46,135

(3,818

)

-

(1,462

)

446

41,301

(10

%)

Long-term

3,131,116

67,349

(28,251

)

(29,089

)

(3,179

)

3,137,946

0

%

Cash management

279,175

(22,899

)

-

128

(1,739

)

254,665

(9

%)

Sub Total

3,410,291

44,450

(28,251

)

(28,961

)

(4,918

)

3,392,611

(1

%)

Advisory(5)

150,677

(29,903

)

-

1,448

(2,152

)

120,070

(20

%)

Total AUM

$

3,560,968

$

14,547

$

(28,251

)

$

(27,513

)

$

(7,070

)

$

3,512,681

(1

%)

(1) Data reflects the reclassification of prior period AUM to
the current period presentation.

(2) Amountsinclude distributions representing
return of capital and return on investment to investors.

(3) Amounts include outflows due to manager concentration
considerations prior to third quarter 2011 and outflows from scientific
active equity performance prior to second quarter 2011.